1. Current assets and noncurrent assets--> current assets will be converted into cash within one year--> noncurrent assets will be converted into cash after one year

[Example]On March 1, 2011, Entity A loaned $100,000 to Entity B. The loan is due on September 1, 2012.Is this a current or noncurrent asset on the Statement of Financial Positions as of December 31, 2011?--> Since the loan is due within a year from December 31, 2011, it is reported as a current asset.

2. Cash and receivables--> Cash is a financial asset.--> Receivables include accounts receivable and notes receivable.

[Example]On April 1, 2011, Entity A sold 200 units of product to Entity B at $10 per unit on credit.April 20, 2011, Entity B paid $2,000 to Entity A.Prepare journal entries for these transactions.